No it doesn't. Watch Homes under the Hammer. Getting a mortgage quickly is easy for those who have done their advance planning. Only properties withOUT a kitchen or of non-standard construction or in need of a cladding certificate are cash-only sales, but there are plenty of people bidding who don't even know or care about this. If they make the winning bid, they must pay the 10% deposit immediately and the balance within 28 days. If they cannot complete they forfeit their deposit, which is a win-win situation for the seller.
Yes. The former can take months of anguish, or may even be impossible until the greedy sellers realise that they are asking far too much while the latter is immediate. When the hammer goes down contracts are exchanged and 10% deposit due there and then with the balance due in 28 says.
Houses in Britain are obscenely overpriced, and it is greedy sellers and idiotic buyers (females being the worst offenders) able to borrow more than they can afford who are to blame.
No, the market for auction properties will probably be smaller due to the likely need for a cash sale and the nature of the properties. Probate sales can prove good buys, though.
Where do you get the idea that women are any more greedy than men? Or indeed that greed comes into it at all? Most are guided by the estate agent I'd have thought.
There is a BBC program usually shown in the afternoon on BBC1 hosted by Jules ?Hudson. He takes a couple round three prospective properties plus a 'mystery' property and shows them around and asks them to say how much it is on the market for. Almost without exception, the female thinks it is 'worth' tens of £thousands more than it is actually on the market for.
Only non-standard construction properties, flats with cladding and no EWS1 certificate or houses without a kitchen or obviously damaged are sold for cash and these are the minority of auction sales. Watch Homes Under the Hammer.
A useful thought, as I am about to have to do a probate sale.
OTOH, I know I have a ready buyer who won't care about things like energy rating or wiring, because they will be planning to gut the place and refurbish it. It is one of a block of nine flats and, thanks to Right to Buy, the only one in what is now a privately owned block that is owned, rather than rented. The freeholder and owner of the other flats has always wanted to buy it. With luck (my job as executor is to get the best price) they might be willing to pay a premium.
I have not watched that fine piece of television, but I understood most people on there are buying for BTL, and hence on BTL mortgages? Which are commercial lending and somewhat different from regular owner-occupier mortgages.
No, actually quite a few buyers who are shown are buying for themselves or for a family member, or just to do up and sell for a profit (ignoring all their own labour of course).
Quiet often see people buying for a charity dealing with homeless people.These are the larger properties converted into HMO's.
These days landlords only seem to be buying terraced houses in places like Derby or the Welsh valleys with the intention of letting. Those types of houses in those locations are of no longer of any interest to the normal FTB and there seems to be an endless supply of tenants using housing benefit to pay the rent.
OK, but are the doer-uppers doing it with a residential mortgage? They would have to inhabit the place to qualify, not live somewhere else and have the house as their project without moving into it. Are they the Grand Designs types who live in a caravan in the garden while the place is uninhabitable?
And if they're doing it up for a family member the family member would have to be the one doing the buying and mortgaging, unless they're joint owners.
If they're sufficiently cheap enough to be a cash purchase, that's something else.
Yes !. Occasionally there is a bidder who has not got pre-approval or the details change but they always seem to get a loan before the 28 day completion. I can't remember when I last saw a program where a bidder lost his deposit.
No, just normal buyers who buy at auction. Some do the house up and then immediately re-mortgage because of the higher value and then have more money to put towards their next auction purchase. In the states it is called house 'flipping'.
I think you are bit out of touch with what is happening in the house buying and selling market ??.
I haven't watched much HUTH but be aware there's a bit of artifice in these programmes - ie they film what makes good TV not a true mirror of real life.
I got rather fed up of Wheeler Dealers where there was a common trope that the presenter would 'find' a car on an 'internet auction site' and 'haggled for it', when in actual fact their researcher pestered classic car forums (not unlike the researchers that turn up here wanting people for DIY SOS or whatever), bought a car from someone, trailered it away, made it roadworthy, and then took it back to film the 'purchase' with a crew and numerous takes, with the 'haggling' being according to the script and the buyer being a free actor (with lack of acting skills).
I think HUTH visits and films at numerous properties that are up for auction, films the auction, and then asks the winner of each one if they want to take part. If they don't they throw the film they took of that one away and wait for a property where the buyer says yes. So there's a certain selection bias in the people they do end up filming, and they select the ones that make it interesting.
Probably, it's been over a year now. I'm subscribed to the local auction house but most of the auctions are isolated rural cottages that are uninhabited because there's nothing but miles of mud in every direction, which aren't very attractive even if they were in good condition and not lacking a roof.
Again TV bullshit. They go in with a stated budget (usually half a million, or more) and are shown what they believe are houses in that price range. If someone guesses that the price is a few tens of thousands above then they have only made a error in their guess of 5%. Even if the price is £50k lower it is mentioned that it would probably cost that amount to bring the property up to the specification which the buyer originally requested.
Just because you can find one committed person at the auction who has done all that work pre-auction (for a property that they may not actually win at the auction)
doesn't mean that you aren't losing out to a potential sale to any one of 99 others who haven't.
It's an indisputable fact that selling at auction lessens your pool of potential buyers and thus probably lowers the final selling price
Well that's a cost benefit issue. Developere here bought crummy old cottage with a big garden, with planning for two houses with postage stamp gardends in its land, and refurbed the cottage to make his profit. slightly more than flattening it and rebuilding from scratch
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